P6-1A Pitt Limited is trying to determine the value of its ending inventory as of Febru- ary 28, 2017, the company's year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $48 000 However, she didn't know how to treat the following transactions so she didn't record the BLEMS: SETA ems and amounts to n inventory. (a) On February 26, Pitt shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. (b) On February 26, Martine Inc. shipped goods to Pitt FOB destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Pitt on March 2. (c) Pitt had $500 of inventory at a customer's warehouse "on approval." The customer was going to let Pitt know whether it wanted the merchandise by the end of the week March 4. (d) Pitt also had $400 of inventory at a Belle craft shop, on consignment from Pitt. (e) On February 26, Pitt ordered goods costing $750. The goods were shipped FOB ship- ping point on February 27. Pitt received the goods on March 1. (f) On February 28, Pitt packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2. (g) Pitt had damaged goods set aside in the warehouse because they are no longer salea- ble. These goods originally cost $400 and, originally, Pitt expected to sell these items for $600. Instructions For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. pods sold and P6-2A Mullí
P6-1A Pitt Limited is trying to determine the value of its ending inventory as of Febru- ary 28, 2017, the company's year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $48 000 However, she didn't know how to treat the following transactions so she didn't record the BLEMS: SETA ems and amounts to n inventory. (a) On February 26, Pitt shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. (b) On February 26, Martine Inc. shipped goods to Pitt FOB destination. The invoice price was $350 plus $25 for freight. The receiving report indicates that the goods were received by Pitt on March 2. (c) Pitt had $500 of inventory at a customer's warehouse "on approval." The customer was going to let Pitt know whether it wanted the merchandise by the end of the week March 4. (d) Pitt also had $400 of inventory at a Belle craft shop, on consignment from Pitt. (e) On February 26, Pitt ordered goods costing $750. The goods were shipped FOB ship- ping point on February 27. Pitt received the goods on March 1. (f) On February 28, Pitt packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items was $280. The receiving report indicates that the goods were received by the customer on March 2. (g) Pitt had damaged goods set aside in the warehouse because they are no longer salea- ble. These goods originally cost $400 and, originally, Pitt expected to sell these items for $600. Instructions For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in. pods sold and P6-2A Mullí
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 71APSA: Effects of an Inventory Error The income statements for Graul Corporation for the 3 years ending in...
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Question
P6-1A(a) only
Transcribed Image Text:P6-1A Pitt Limited is trying to determine the value of its ending inventory as of Febru-
ary 28, 2017, the company's year-end. The accountant counted everything that was in the
warehouse as of February 28, which resulted in an ending inventory valuation of $48 000
However, she didn't know how to treat the following transactions so she didn't record the
BLEMS: SETA
ems and amounts to
n inventory.
(a) On February 26, Pitt shipped to a customer goods costing $800. The goods were
shipped FOB shipping point, and the receiving report indicates that the customer
received the goods on March 2.
(b) On February 26, Martine Inc. shipped goods to Pitt FOB destination. The invoice
price was $350 plus $25 for freight. The receiving report indicates that the goods were
received by Pitt on March 2.
(c) Pitt had $500 of inventory at a customer's warehouse "on approval." The customer
was going to let Pitt know whether it wanted the merchandise by the end of the week
March 4.
(d) Pitt also had $400 of inventory at a Belle craft shop, on consignment from Pitt.
(e) On February 26, Pitt ordered goods costing $750. The goods were shipped FOB ship-
ping point on February 27. Pitt received the goods on March 1.
(f) On February 28, Pitt packaged goods and had them ready for shipping to a customer
FOB destination. The invoice price was $350 plus $25 for freight; the cost of the items
was $280. The receiving report indicates that the goods were received by the customer
on March 2.
(g) Pitt had damaged goods set aside in the warehouse because they are no longer salea-
ble. These goods originally cost $400 and, originally, Pitt expected to sell these items
for $600.
Instructions
For each of the above transactions, specify whether the item in question should be included
in ending inventory, and if so, at what amount. For each item that is not included in
ending inventory, indicate who owns it and what account, if any, it should have been
recorded in.
pods sold and
P6-2A Mullí
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